Real Estate Buy Box – Rob’s Multifamily Must-Have Criteria

Rob Rowsell runs down what is in his real estate buy box. That is to say, what criteria every multifamily property must meet in order to interest him in buying it. Take a look at the population, amenities, and demographics when you’re looking to buy and fill rental properties.

What's in your real estate buy box for multifamily rental properties?What’s in Rob’s Real Estate Buy Box?

Rob has seen his share of ups and downs in the US real estate market. Thus, he has experienced his share of failures along the way to amassing wealth. Only through these hardships could he learn what he requires to fill his real estate buy box.

  1. City Population of 75,000 or More: Filling and staffing multifamily properties is very challenging in a population lower than 75k. The farther from a large metro area you search, the less competition you encounter, but that is for a good reason.
  2. Major Airport Within 30 Minutes of the Property: Nobody wants a long drive from the airport to inspect their properties. Due to reliability and available perks, Rob strongly prefers that the airport be a major international carrier.
  3. Job Growth of 3-5% Year Over Year
  4. Population Growth of 3-5% Year Over Year
  5. Building Contains 80 Units or More: This rule of thumb applies for syndications. Smaller complexes may make it into the buy box, but would likely need to involve a joint venture.
  6. Built No Earlier Than 1980
  7. 7% or More Average Cash On Cash Return Over the Life of the Deal: Knowing you can promise this figure to your investors is key to securing their trust.
  8. AAR of 20% Over the Life of the Deal: This means cash on cash amount combined with the increased equity at sale.
  9. No Coastal Properties and No Flood Zones: Nobody wants a letter of cancellation or arbitrary, huge increases from their insurance company. These are out of your control, so don’t risk it!

Join Our Community

Do you own multifamily properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!